Pacific Ethanol, Inc. Closes $28.0 Million Public Offering of Common Stock
SACRAMENTO, Calif., April 9, 2014 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc.
(Nasdaq:PEIX), the leading producer and marketer of low-carbon renewable fuels
in the Western United States, announced that on April 8, 2014 it closed its
previously announced underwritten public offering of 1,750,000 shares of its
common stock at a public offering price of $16.00 per share, for gross
offering proceeds of $28.0 million.
The net offering proceeds to Pacific Ethanol are expected to be approximately
$26.0 million after deducting underwriting discounts and commissions and other
estimated offering expenses. The company intends to use the net proceeds from
the offering to fully repay the approximately $0.5 million in outstanding
principal and accrued and unpaid interest owed under the terms of its senior
unsecured notes, and will use the remaining balance of the net proceeds from
the offering for general corporate purposes, including strengthening its
Neil Koehler, the company's president and CEO, stated "The proceeds from this
capital raise strengthen our balance sheet by eliminating our senior unsecured
debt, reducing our interest expense and providing additional cash reserves to
support profitable growth."
Lazard Capital Markets LLC and Cowen and Company, LLC acted as the joint
book-running managers for the offering, and Craig-Hallum Capital Group LLC
acted as the co-manager.
The shares of common stock were sold pursuant to effective registration
statements on Form S-3, together with a prospectus supplement and accompanying
base prospectus, previously filed with the Securities and Exchange Commission.
About Pacific Ethanol, Inc.
Pacific Ethanol, Inc. (Nasdaq:PEIX) is the leading producer and marketer of
low-carbon renewable fuels in the Western United States. Pacific Ethanol also
sells co-products, including wet distillers grain ("WDG"), a nutritional
animal feed. Serving integrated oil companies and gasoline marketers who blend
ethanol into gasoline, Pacific Ethanol provides transportation, storage and
delivery of ethanol through third-party service providers in the Western
United States, primarily in California, Arizona, Nevada, Utah, Oregon,
Colorado, Idaho and Washington. Pacific Ethanol has a 91% ownership interest
in PE Op Co., the owner of four ethanol production facilities. Pacific Ethanol
operates and manages the four ethanol production facilities, which have a
combined annual production capacity of 200 million gallons. The facilities in
operation are located in Boardman, Oregon, Burley, Idaho and Stockton,
California, and one facility is located in Madera, California that is
currently being restarted. The facilities are near their respective fuel and
feed customers, offering significant timing, transportation cost and
logistical advantages. Pacific Ethanol's subsidiary, Kinergy Marketing, LLC,
markets ethanol from Pacific Ethanol's managed plants and from other
third-party production facilities, and another subsidiary, Pacific Ag.
Products, LLC, markets WDG. For more information please visit
Safe Harbor Statement under the Private Securities Litigation Reform Act of
With the exception of historical information, the matters discussed in this
press release including, without limitation, the ability of Pacific Ethanol to
continue as the leading producer and marketer of low-carbon renewable fuels in
the Western United States, are forward-looking statements and considerations
that involve a number of risks and uncertainties. The actual future results of
Pacific Ethanol could differ from those statements. Factors that could cause
or contribute to such differences include, but are not limited to, adverse
economic and market conditions; changes in governmental regulations and
policies; and other events, factors and risks previously and from time to time
disclosed in Pacific Ethanol's filings with the Securities and Exchange
Commission including, specifically, those factors set forth in the "Risk
Factors" section contained in Pacific Ethanol's Form 10-K and in the final
prospectus supplement relating to the proposed offering filed with the
Securities and Exchange Commission on March 31, 2014 and April 3, 2014,
CONTACT: Company IR Contact:
Pacific Ethanol, Inc.
IR Agency Contact:
Pacific Ethanol, Inc.
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